Vietnamese electric vehicle manufacturer VinFast has scaled down its India ambitions, reducing its annual sales target by one-third amid mounting challenges in its entry strategy. The revised target now stands at just 3,000 units for the first year.This move follows widespread dealer dissatisfaction and delays in the company's manufacturing plans. Of the 40 dealers initially onboarded across India, the majority have revoked their Letters of Intent (LoI) . Only 8 to 10 dealers remain committed to the company’s operations. Dealers cited unclear distribution models, opaque pricing structures, and vague product positioning as major reasons for pulling out.Also Read: MG SZ EV's Price Drop Alert in India: Shocking DealsVinFast’s entry into the Indian EV market was expected to be bold, with the launch of its VF 6 and VF 7 electric SUV models. However, internal sources now suggest 2025 will be a “market testing phase” , with the real push coming next year through the launch of the VF 3 , the company’s compact, affordable SUV tailored for emerging markets like India.Adding to its woes, VinFast’s Thoothukudi manufacturing plant in Tamil Nadu has faced a launch delay , now expected to begin operations on July 30 , a month later than initially planned. As a result, bookings for the VF 6 and VF 7 are likely to commence by mid-July , with customer deliveries starting from mid-August .The current turbulence indicates that VinFast’s full-scale plans are now being deferred to 2026 , as it attempts to regroup, refine its strategy, and rebuild its dealer network.The Indian EV market, while growing rapidly, remains highly competitive. Industry observers suggest that clear communication, affordable pricing, and a robust retail strategy will be critical if VinFast hopes to establish a firm foothold.Also Read: Vinfast Electric SUVs: Indian Launch Timeline Unveiled